About

Chick Fil a

CHICK-FIL-A
THE PROBLEM: How do you convince consumers to try a “healthier” tastey chicken sandwich instead of buying “fast food?” SOLUTION: Cause a spectacle

BackgroundChick-fil-A’s signature product is the chicken sandwich, served primarily during the lunchtime daypart. This means the restaurant chain competes on one of the fiercest battlegrounds – the fast food restaurant market. When compared to giants such as McDonald’s, Burger King and Wendy’s, Chick-filA is outnumbered in store count nearly 4 to 1 and outspent in media tenfold. Moreover, each of these chains has already etched distinct images in the minds of consumers. The vast majority of fast food outlets sell hamburgers as their primary food product, and usually resort to price promotions and movie tie-ins to attract customers. This competition has had a profound effect on business. Industry-wide flat pricing and rapid store growth have held average sales increases to under 2% a store for several years running. In contrast, Chick-fil-A’s attraction is not price or convenience, but the taste of their chicken sandwiches – a “healthier” alternative to hamburgers. In test research surveys, consumers spoke quite favorably about the chain’s product during aided brand awareness. Faced with these “David vs. Goliath” odds, Chick-fil-A gave its advertising agency, The Richards Group, a tough assignment – develop an integrated advertising and marketing campaign that clearly positions Chick-fil-A as a preferred alternative in the burger-dominated fast food marketplace.

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In this paper I will be giving a thorough analysis of the Chick-Fil-A company by discussing the history of the company as well as how the company was founded, the operations of the company, how the company gives back to the community, and how the company markets itself to the consumers. The reason I chose Chick-Fil-A to do my paper on is ever since I was a little boy Chick-Fil-A has always been my favorite fast food. I can remember when I was little the closest Chick-Fil-A to our home was the one on Cox Creek Parkway in front of the mall in Florence. Anytime we were in Florence I would beg my parents to take me thru the drive thru because I loved the Chick-Fil-A kids meal as well as the toy that came with it. Chick-Fil-A restaurants have been appealing to me ever since I was little so since then I have been a loyal customer of Chick-Fil-A. I have also always been interested in knowing how Chick-Fil-A always has had a huge customer base and every time I went to eat at a Chick-Fil-A, it seemed to always be crowded so that tells me that their marketing department is definitely doing something right because their restaurants are doing great...

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Chick-fil-A is one of the most successful fast food restaurant establishments in the country. With over 1,300 locations in 37 states in the Southern U.S., they continue to grow the brand by expanding to new territories (Chick-fil-A Company, 2009, para 1). In 2008 Chick-fil-A has seen a 12.17 percent sales increase over the chain’s 2007 performance and a same store sale increase of 4.59 percent (Chick-fil-A Company, 2009, para1). Throughout the years Chick-fil-A has come up with many innovative ideas to continue expanding business and satisfying their loyal customers. One of the ideas was to offer different types of restaurant set-ups to cater to customer’s needs. The different restaurant set-ups include mall/in line, stand-alone, drive-thru only outlets, dwarf houses, Truett’s grills, licensed non-traditional outlets (franchises) and satellite/lunch-counter. After proper research of different geographical locations the writer has decided to buy into a chic-fil-A franchise zoned in the Columbia County, Grovetown area.
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Chick-fil-A is a restaurant that serves chicken and they are the second largest quick service chicken restaurant chain in the United States. S. Ttruett Cathy is the founder, chairman, and CEO of Chick-fil-A he started the first Chick-fil-A in a mall in Atlanta. Cathy works to inspire and influence others and therefore he is closed on Sunday’s to try to inspire others to direct their attention to god and being better Christians. Cathy also established a program to help those working for him get through college with a scholarship from the business.
Chick-fil-A also works hard in their advertising, they have cows that say ‘Eat Mor Chikin” this convinces people to not eat meat and to instead eat chicken. According to a survey this is one of the customers three favorite things. The customers love that the store is closed on Sundays, the food is amazing and the third being the cows. The cows were such a big hit that the store now sells clothing, bobble head cows, and calendars. They were so effective in their promoting that they won a national silver EFFIE award in the fast food restaurants for creativity in advertising.
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Exhibit 1- Dominant Economic Features
The quick serve restaurant industry is a large with 2012 annual revenue of $169.7 billion spread over 190,000 businesses. Globalization of the industry is expected to add $186.2 billion in revenues by 2017. The economy and new health trends caused an average annual contraction of 0.7% across the fast food industry from 2007 to 2012. However, the industry was able to grow by 1.8% and 1.3% in 2010 and 2011.
The number of rivals has been increasing because of new entrants that take advantage of low capital that is needed to open a franchise. The franchise model has allowed companies to compete on a growing global level. The QSR companies have extended operations into Europe to take advantage of their affluent population, as well as, growing business in China and India as American brand image becomes more popular. Due to US saturation of the QSR, firms have found it prudent to expand into these oversea markets.
The demand for these restaurants is not fragmented as the customers are price sensitive and want to have food in a hurry. This price demand has caused a large amount of product differentiation because there is almost no cost associated with switching from restaurant to restaurant. The differentiation is not just among the food offered but also the hours of operation, meal incentives, contests, and types of location. McDonald’s has done a great job of utilizing meal incentives and contests....

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CASE ANALYSIS
Principals of Management
December 11, 2008
Abstract
Chick-fil-a restaurant is a family owned chain. Truett Cathy has been in the restaurant business for 62 years and now has 1,400 restaurants in 37 states including Washington D.C. {text:bibliography-mark} . As of 2007, Chick-fil-A’s reached sales of $2.64 billion which showed an improvement of 16.09% increase in sales from 2006 {text:bibliography-mark} .
Table of Contents
I. Introduction and Background
Abstract ………………………………………..……………………………2 II. Literature Review…………………………………………………………..4-7
A. Major research area one: History of Chick-fil-A………………………………………4
B. Major research area two: Mission Statement………………….……….……….4
C. Major research area three: SWOT Analysis……………………………….……..5-7
D. Major research area four: Industry Environment………………………………..7
E. Major research area five: Financial Analysis……………………………………7
E. Conclusion:…………………………………………………………………...….7
III. References ……………………………………………………….…...….…….8
Literature Review
History of Chick-fil-A:
In the small Atlanta suburb of Hapeville in 1946, Truett Cathy opened the Dwarf Grill and later named it Dwarf House. In 1961, Good Brothers Poultry offered Cathy to come up with a chicken sandwich that met up to airline size requirements. He then invented the original Chicken...

...S. Truett Cathy founded Chick-fil-A in 1967. Cathy is the founder, chairman, and CEO of Chick-fil-A. The first Chick-fil-A restaurant was opened in Atlanta’s Greenbriar Shopping Center. In 2005, Chick-fil-A had sales of $1.975 billion, which landed them as being the “second-largest quick-service chicken restaurant chain in the United States” (Perreault, Cannon, & McCarthy, 2012, p. 529). Throughout 37 states and Washington, D.C., there are 1,250+ Chick-fil-A restaurants.
Due to Cathy’s religious background, all of the restaurants are closed on Sundays. “The company’s official statement of corporate purpose is “to glorify God by being a faithful steward of all that is entrusted to us and to have a positive influence on all who come in contact with Chick-fil-A”” (Perreault, Cannon, & McCarthy, 2012, p. 529). Cathy also established the WinShape Foundation in 1984 in attempt to help people such as restaurant employees, foster children, and other young people.
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Chick-fil-A will never be open on a Sunday, based on Founder and Chairman Truett Cathy’s Christian belief in Sunday as a day of worship.
always served with the famous “our pleasure” expression of gratitude from their front-line associates.
the organization has avoided defining their value proposition as the “low-cost leader,” and have made it their mission to differentiate themselves through customer service, market innovation and delivering additional value to their customers.
http://www.restaurant.org/tools/magazines/rusa/magarchive/year/issue/article/?ArticleID=804
Cathy attributes his success in business to his belief in adhering to faith-based principles and values on the job.
Cathy: We follow this simple rule: you need to do things right each and every time. It’s better to cater to the customers we have than to recruit new customers.
close on Sundays because I wanted to ensure our employees had an opportunity to worship, spend time with family and friends, or just to enjoy a day of rest.
We have a theme—“Courtesy is cheap but it pays great dividends”—that we teach our employees. We also help our community and young people with college scholarships and foster-care homes.
Cathy’s 5 steps for business success:
1. Climb with care and confidence
2. Create a “loyalty effect”
3. Never lose a customer,
4. Put principles and...